CC 2014-02-11_11.c. FY 2013-14 Mid Year Budget ReportMEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES
SUBJECT: CONSIDERATION OF FISCAL YEAR 2013-14 MID-YEAR BUDGET
REPORT
DATE: FEBRUARY 11, 2014
RECOMMENDATION:
It is recommended the City Council:
• Approve detailed budget adjustments listed in the Mid-Year budget report;
• Approve Schedule A; and
• Approve (Deny) requests for additional appropriations in the General Fund and
Sewer Fund
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The General Fund ending balance will be impacted by the approval of the recommended
revenue and appropriation adjustments as follows:
Projected Fund Balance in Biennial Budget:
Higher beginning Fund Balance
Net increase in Revenue
Net increase in Expenditures
Net decrease in use of reserves
Total Increase to General Fund Balance
Projected Fund Balance at 6/30/14
$ 81,233
575,300
577,980
120.200
$3,393,383
198.753
$3,592,136
The recommended budget adjustments are anticipated to have a minimal impact on staff
workload.
BACKGROUND:
Each year, the City Council adopts a budget, which commits resources to the .
accomplishment of its policies. The Administrative Services Department prepares budget
updates for the City Council.
The purpose of the City's Mid Year Budget Report is to:
Item 11.c. - Page 1
CONSIDERATION OF MID YEAR BUDGET REPORT
FEBRUARY 11, 2014
PAGE2
• Compare revenues received and expenditures made to budgeted amounts to determine
appropriate adjustments.
• Report on Departmental accomplishments.
• Provide a link between the City budget, the financial records, and the independent
financial audit.
• Compare current revenues and expenditures against the prior fiscal year.
ANALYSIS OF ISSUES:
• Overall, revenues are recovering and the City is benefitting from the widespread
economic gains. Sales taxes are increasing in all major categories, property taxes are
trending upward and there has been increased registration in the City's recreation
programs. Expenditures have largely remained at budgeted levels. This had reduced
the amount of reserves that will be required in order to balance the budget from
$215,000 to $94,800 in FY 2013-14 and from $150,000 to zero in FY 2014-15.
• The beginning General Fund balance is $3,686,933, which was an increase of
$381,083 from the prior year and was 27% of General Fund expenditures at year-end.
• The current projected available General Fund Balance for June 30, 2014 is $3,592,136,
an increase of $198,753 from the projected fund balance of $3,393,383 published in the
FY 2013-14 Budget. This fund balance is projected to be 25% of appropriations, which is
above the City Council fund balance goal of 20%. The increase in the projected fund
balance is largely due to one-time savings in the prior year, which increased the
beginning fund balance, and higher than expected revenues in the current year.
• As part of the Mid Year process, staff is asked to review their current budgets and
determine if any adjustments are required. General Fund recommendations result in a
net increase in appropriations of $217,800 and an increase of $695,500 in revenue in FY
2013-14 and an increase of $2,700 in expenditures and $241,500 in revenue in FY
2014-15 ..
• An increase of revenues is recommended for the Sales Tax Fund ($78,000) and
increased appropriation is requested in the Sewer Fund ($25,000). Detailed descriptions
of these requests are included in the Mid-Year Report and shown on Schedule A.
• There are several important items that are not addressed in this Mid-Year Budget Report
that will have an impact on the City's financial condition which will be adjusted during the
year end budget review. Staff is currently working on revisions to the City's water and
wastewater rates, and payment for City water services is expected to impact the General
Fund beginning in FY 2014-15. One of the findings of the water and wastewater rate
study is that the City should be paying for its own water use costs. In addition, the Mid-
Year Budget Report does not make any appropriation for future staffing cost increases
that may be negotiated during the current fiscal year. Staff is also carefully reviewing the
current cost allocations and transfers between the General Fund and enterprise funds to
ensure appropriate calculations and transfers are occurring. Preliminary results indicate a
likely reduction in transfers from the water and sewer funds. Each of these items may
have a financial impact on the City's funds, particularly the General Fund.
Item 11.c. - Page 2
CONSIDERATION OF MID YEAR BUDGET REPORT
FEBRUARY 11, 2014
PAGE3
Management Reporting System Status Report
The Man_agement Reporting System Status Report on departmental budget goals is
presented as a separate section at the end of this report. The format has been changed this
year to focus on goals identified in the Biennial Budget and provide ease of use for the
reader.
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
1. Approve Schedule A included in the Mid Year Budget Report;
2. Do not approve recommended budget adjustments and propose reductions to balance
the budget and/or increase General Fund reserve;
3. Provide direction to staff.
ADVANTAGES:
The Mid Year Budget Report provides an updated review of the City finances in the current
fiscal year, allocates additional funding to meet unanticipated needs and complete projects,
and maintains a fund balance that exceeds the City's minimum reserve policy amount.
DISADVANTAGES:
Based on the recommendations, departmental budgets maintain current service levels, no
significant new projects or programs are recommended.
ENVIROMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, February 6, 2014. The Agenda
and report were posted on the City's website on Friday, February 7, 2014. No public
comments were received.
Attachment(s):
• Mid Year Budget Report
Item 11.c. - Page 3
City of
Arroyo Grande
Administrative Services Department
MID-YEAR BUDGET REPORT
FISCAL YEAR 2013-2014
Item 11.c. - Page 4
City of Arroyo Grande
Mid-Year Budget Report – 2013/14 February 11, 2014
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Table of Contents
Overview ........................................................................................................................................................................3
Summary of Key Points................................................................................................................................................3
Budget Changes Approved To-Date ..........................................................................................................................4
Mid Year Budget Requests ..........................................................................................................................................5
General Fund Expenditures: ...................................................................................................................................6
General Fund Revenues:..........................................................................................................................................6
Other Funds: ..............................................................................................................................................................7
General Fund Overview ...............................................................................................................................................8
General Fund Revenues ...............................................................................................................................................9
General Fund Expenditures ........................................................................................................................................10
Overtime Summary: .................................................................................................................................................12
Other Funds ...................................................................................................................................................................12
Attachments ...................................................................................................................................................................13
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City of Arroyo Grande
Mid-Year Budget Report – 2013/14 February 11, 2014
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Overview
The City’s Mid-Year Report is prepared to compare the revenues and expenditures occurring during the first six months
of the fiscal year against budgeted amounts to determine appropriate adjustments; to report on departmental
accomplishments; to provide links between the City budget, the financial records, and the independent financial audit
and; to compare revenues earned and expenses made during the first six months of the Fiscal Year (FY) 2013-14 against
the FY 2012-13 figures. This information is provided in the following format:
Schedule A: The starting point is the audited FY 2012-13 ending fund balances, which is also the beginning Available
Fund Balances for the FY 2013-14. Combining the beginning Available Fund Balances with the estimated revenues,
transfers, and appropriations adopted in the Biennial Budget and this report, provides the estimated ending fund
balances.
As a result of a comprehensive review, adjustments are recommended where actual receipts and disbursements are
materially different from the budgeted amounts. Although budget adjustments are recommended across several City
funds, the emphasis of the Mid-Year Budget Report continues to be directed at the General Fund. The General Fund is
deemed to be the most critical as it provides most services commonly associated with government (i.e., public safety,
recreation, parks, building, public works, planning, etc.) and is limited primarily by tax-generated revenues.
Summary of Key Points
Overall, revenues are recovering and the City is benefitting from the widespread economic gains. Sales taxes are
increasing in all major categories, property taxes are trending upward and there has been increased registration in the
City’s recreation programs. Expenditures have largely remained at budgeted levels. This had reduced the amount of
reserves that will be required in order to balance the budget from $215,000 to $79,100 in FY 2013-14 and from $150,000
to zero in FY 2014-15.
The total Citywide Fund balance at June 30, 2013 was $31.2 million, which was an increase of approximately $2.8
million compared to June 30, 2012. The beginning General Fund balance was $3.7 million, which was an increase of
$381,083 from the prior year and 27% of General Fund expenditures. The audited Fund Balances reported in the
Comprehensive Annual Financial Report (CAFR) have been incorporated into the beginning fund balances on
Schedule A. There are a couple of adjustments to the beginning fund balances that are different from the CAFR.
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There is an adjustment to subtract the fixed asset balance of $10.3 million from the Water Fund and $838,666 from the
debt service funds in order to reflect a more accurate expendable fund balance.
The City Council has established an Undesignated General Fund Balance goal of 20 % of annual appropriation with a
minimum goal of 15%. The City’s Undesignated General Fund Balance represents the available resources to provide
funding for future contingencies such as earthquakes, civil unrest, economic fluctuations, major infrastructure repairs
and investment in capital for improved productivity and efficiencies. Inadequate reserves increase financial risk,
negatively impact cash flow, and reduce the City’s ability to attract and sustain economic development and growth.
The current projected available General Fund Balance for June 30, 2014 is $3.6 million, an increase of $198,753 from the
projected fund balance of $3.4 million published in the Biennial Budget. This projected fund balance is 25% of
appropriations, which is above the City Council fund balance goal of 20%. The increase in the projected fund balance is
largely due to one-time savings in the prior year and higher than expected revenues in the current year. The projected
Fund Balance assumes revenues are received exactly as budgeted, all budget expenditures are made, and all capital
transfers required by the CIP Program are completed. Historically, the General Fund has not been required to fund all
budgeted capital transfers and expenditures at year-end are traditionally less than budgeted.
The Management Reporting System Status Report is presented as a separate section at the end of this report. This
provides a status report of departmental budget goals.
Budget Changes Approved To-Date
Various budget changes have been approved by the Council or City Manager, as appropriate, since the adoption of the
original Biennial Budget in June 2013. The following list summarizes these changes, which are reflected in the
Adjustments to Appropriations column of Schedule A.
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City of Arroyo Grande
Mid-Year Budget Report – 2013/14 February 11, 2014
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General Fund Streets Fund
Public Works vehicles (lease financed)122,850$ Adoption of MOU's and staffing resolutions 4,500$
Accelerate VOIP funding from 2014-15 24,000Public Works vehicles (lease financed)190,575
Adoption of MOU's and staffing resolutions 56,575Total Streets Fund 195,075$
Replacement pump at Soto Sports Complex 6,500
Receipt of insurance refund offsetting expenses 14,055 State COPS Block Grant Fund
Skate Park contribution 1,000Police building remodel budget changes 65,000$
Police building remodel budget changes 40,000
Total General Fund 264,980$ Sewer Fund
Corporation Yard building budget changes 5,000$
Capital Outlay Fund (General Fund Transfer)Adoption of MOU's and staffing resolutions 2,600
Mankins donation - Hoosegow Park 50,000$ Public Works vehicles (lease financed)21,650
Total Sewer Fund 29,250$
Police Impact Fee Fund
Police building remodel budget changes 61,400$ Sewer Facility Impact Fee Fund
Police building remodel budget changes 33,000$
Park Development Fee Fund
Police building remodel budget changes 20,000$ Water Fund
Corporation Yard building budget changes 10,000$
Local Use Tax Fund Adoption of MOU's and staffing resolutions 10,500
Rule 20A credit purchase accelerated from 2014-1533,000$ Public Works vehicles (lease financed)24,000
Street resurfacing 45,706Replacement pump at Soto Sports Complex 6,500
Police building remodel budget changes 334,850Leanna Creek crossing project 38,500
Corporation Yard building budget changes 10,000Total Water Fund 89,500$
Total Local Use Tax Fund 423,556$
Approved budget changes to-date
Mid Year Budget Requests
As part of the mid-year process, departments were asked to review their current budgets and determine if any adjustments
should be proposed in this report. Departments have been asked to closely monitor their budgets and spend only what is
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necessary. At this time, staff is only recommending minor adjustments to the General Fund departmental budgets that are
necessary due to timing considerations, increases that are supported by additional revenues, and one-time project funding.
General Fund Expenditures:
Community Development – Staff is proposing to accelerate $75,000 in funding from the second year of the Biennial
Budget to accomplish the Land Use Element update. This budget is proposed to be supplemented by an additional
$60,000 in order to prepare an East Grand Avenue Development Plan. The Plan will involve the community,
developers and policy makers in preparing a comprehensive plan to revitalize East Grand Avenue. It will provide
targeted recommendations to zoning, land use, streetscape, permitting, circulation, and other features. These two
projects would be most effective if timing is coordinated, therefore staff proposed to begin this work in FY 2013-14. In
addition, staff is requesting $12,500 in FY 2013-14 and $25,000 in FY 2014-15 for additional contractual services to assist
in providing inspection services.
Recreation Services – Staff is requesting additional funding of $34,000 for the Children in Motion program, $21,000 for
Special Classes and $4,200 for additional part-time staffing. These increases are a direct result of additional activity in
these programs, which has resulted in increased revenues that more than offset the additional costs.
Legislative and Information Services – Staff is requesting an additional $3,800 for the purchase of additional
equipment that will be used to provide a virtual private network for the City. This is a one-time expense for the City’s
information technology system.
Police Department – In 2010, the Council approved the sale of surplus Police Department weapons, with the proceeds
of that sale to be used for upgrades, standardization and repair of current weapons. Due to the complex nature of
decommissioning the firearms, the sale of the surplus weapons did not occur until June 2013. The $7,300 proceeds
were not identified for carryover into the FY 2013-14 budget; therefore, the appropriation for upgrading and
standardizing the current weapons has lapsed and needs to approved by the Council in order to carry out the original
intent.
General Fund Revenues:
Property Tax – Per discussions with the County, assessed valuations and supplemental assessments are higher than
originally anticipated. This will result in an increase of $340,000 in this revenue source in FY 2013-14 and $346,800 in
FY 2014-15.
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Triple Flip VLF – This revenue source grows by the same factors as Property Tax; therefore, staff is anticipating
additional revenues of $53,000 in FY 2013-14 and $78,400 in FY 2014-15.
Transient Occupancy Tax – With the addition of the Tourism Business Improvement District activity, and a general
recovery in the tourism industry, revenues are projected to be higher than originally estimated. Staff is requesting an
increase of $15,000 in this revenue source for FY 2013-14 and $15,500 for FY 2014-15.
Sales and Use Tax – Per discussions with the City’s sales tax consultant, sales tax revenues are expected to be higher
than initially estimated. Staff is requesting an increase of $99,300 in this revenue source in FY 2013-14 and $28,700 in
FY 2014-15, as well as in the Sales Tax Fund, as mentioned below.
Recreation Charges for Service – Due to increased participation levels, revenues for certain recreation programs
are exceeding budgeted estimates. Staff is requesting an increase in this revenue source of $74,450 in FY 2013-14
and $47,000 in 2014-15.
Other Revenues – Based on an analysis of the performance of all revenues at this point of the fiscal year, various
other adjustments totaling an additional $113,750 in FY 2013-14 and a reduction of $134,900 in FY 2014-15 are
anticipated.
Other Funds:
Local Sales Tax Fund:
Per discussions with our sales tax consultant, sales tax revenues are expected to be higher than initially estimated. Staff is
requesting an increase of $78,000 to this revenue source. This increase is consistent with the increase recommended for
the General Fund, as mentioned above.
Sewer Fund:
Staff is requesting $25,000 in order to begin a phased approach to meeting the amended Monitoring and Reporting
Program requirements from the State Water Resources Control Board regarding the sanitary sewer system. These new
requirements came into effect in September 2013.
In general, revenues and expenditures in all other funds are on target with projections and prior year trends. No other
adjustments are requested at this time.
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Mid-Year Budget Report – 2013/14 February 11, 2014
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General Fund Overview
Shown below is an overview of the revenues, expenses, and transfers for Fiscal Years 20 12-13 and 2013-14 as of the mid-
point of the fiscal year. As reflected, both revenues and expenditures are higher in the current fiscal year than they were
at the same point in time last year.
General Fund FY 2013-14FY 2012-13Variance
Revenues:
Mid-Year Actual $4,600,786$4,149,681$451,105
Mid-Year Transfers 1,019,682942,249$77,433
Total 5,620,4685,091,930$528,538
Expenditures:
Mid-Year Actual 7,173,9756,580,969593,006
Total 7,173,9756,580,969593,006
Impact on Fund Balance(1,553,507)$ (1,489,039)$ (64,468)$
Shown here is a graphic representation of the FY 2013-14 revenues and expenditures, to date, compared with the
amended budget including the recommended Mid-Year adjustments. Transfers In and Transfers Out are included on this
graph to present the total impact on the fund balance. Revenues are currently 40% collected and expenditures are 51%
spent. This reflects the fact that not all revenues and
expenditures occur evenly throughout the fiscal year. Significant
variances are discussed later in the report, but in general, this
trend is consistent with prior years.
General Fund Budget & Actual as of Dec. 31, 2013
Budget Actual
Revenue/Transfers $14,091,565 $5,620,468
Expenditures 14,169,665 7,173,975
Change in Fund Balance $ (78,100) $ (1,553,507)
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City of Arroyo Grande
Mid-Year Budget Report – 2013/14 February 11, 2014
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After Mid-Year adjustments are recorded, the June 30, 2014 fund balance in the General Fund will be approximately $3.6
million, if all budget projections are fulfilled. However, at June 30, 2014, the City may find that revenues have not met the
budgeted projections and not all budgeted appropriations will be spent as year-end actual expenditures are traditionally
less than budgeted amounts.
General Fund Revenues
Total General Fund revenues are at 40% with half of the year complete. This is below 50% because the revenues only
includes four months of Sales Tax revenue, five months of Transient Occupancy Tax (TOT) revenue, four months of
Franchise Fee revenue, and the first half of the triple flip amounts for sales tax $436,000 and VLF $633,750 are not received
until January. The table shown below presents a comparison of the top ten revenue accounts. Because the top revenue
sources account for approximately 75% of total General Fund revenues, changes here can have profound impacts. The
mid-year budget includes additional revenues of $695,500 in FY 2013-14 and $381,500 in FY 2014-15.
Actual
Title Budget Actual %BudgetActual%Change
Property Tax 3,799,000$ 2,234,050$ 59%3,663,800$ 2,020,857$ 55%213,193
Sales & Use Tax 2,429,800 851,337 35%2,326,000 796,183 34%55,154
Triple Flip - VLF 1,267,500 - 0%1,214,500 - 0%-
Triple Flip - Sales Tax 872,000 - 0%787,000 - 0%-
Transient Occupancy Tax775,000 387,996 50%650,000 317,619 49%70,377
Franchise Fees 570,000 137,515 24%570,000 123,118 22%14,397
Children in Motion 300,000 183,545 61%235,000 137,698 59%45,847
Telecomm. Site Leases 204,000 114,450 56%204,000 91,037 45%23,413
Building Permits 186,200 93,564 50%101,000 80,118 79%13,446
Planning Fees 166,800 79,525 48%110,100 73,658 67%5,867
Total 10,570,300$ 4,081,982$ 39%9,861,400$ 3,640,288$ 37%441,694$
Mid-Year Current Fiscal Year Mid-Year Prior Fiscal Year
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City of Arroyo Grande
Mid-Year Budget Report – 2013/14 February 11, 2014
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Sales Tax – Sales tax is higher than the prior year due to an increase in sales activity in nearly every major sales
category; the budget reflects this anticipated increase.
Property Tax – Property tax is showing an increase and this is also reflected in the current year’s budget.
Children in Motion – This revenue is showing an increase of $45,847 when compared to the prior year. Because of
increased participation in this program, the revenue anticipated in FY 2013-14 has been increased in the budget by
$41,500.
Transient Occupancy Tax – This revenue is showing an increase of approximately $70,400 when compared to the
prior year. Staff is requesting an increase in this line item of $15,000 and will continue to monitor this revenue source
closely. This reflects not only economic improvements in the tourism industry, but efforts by the new Tourism
Business Improvement District.
Franchise Fees & Telecommunication Site Leases – These revenues are higher than the previous year due simply to
the timing of receiving payments.
Building Permits & Planning Fees – The increase in these revenue sources reflect an increase in activity in the
construction industry. These revenues are difficult to predict and staff will continue to closely monitor them.
All other variances are within normal ranges.
General Fund Expenditures
Most departmental expenses are under the 50% budget mark with total FY 2013-14 expenses at 51% of budget. Individual
department/division differences between the current and prior fiscal year are highlighted in the table shown on the next
page. This fiscal year, there is an increase of approximately $767,000 in General Fund expenditures over the previous
fiscal year. A portion of this increase reflects carryovers of $45,200 from unspent expenditure budget in the prior fiscal
year, $314,980 in appropriations previously approved by the City Council during the course of the first half of the current
fiscal year and $217,800 in mid-year requests included in this report.
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City of Arroyo Grande
Mid-Year Budget Report – 2013/14 February 11, 2014
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Actual
Title Budget Actual %BudgetActual%Change
City Manager 340,905$ 159,407$ 47%384,559$ 166,954$ 43%(7,547)$
Legislative & Info Svcs 383,730 180,317 47%340,440 160,624 47%19,693$
Retirees 200,000 66,731 33%199,000 61,282 31%5,449$
City Attorney 183,250 109,617 60%220,250 97,143 44%12,474$
Administrative Services 766,420 372,513 49%733,935 362,529 49%9,984$
Community Development 750,820 290,045 39%578,765 252,598 44%37,447$
Information Technology 310,435 190,443 61%259,445 107,254 41%83,189$
Non Departmental 2,333,045 1,694,075 73%2,257,001 1,612,977 71%81,098$
Police 5,788,710 2,646,952 46%5,708,938 2,541,026 45%105,926$
Building & Life Safety 240,850 108,900 45%234,342 104,812 45%4,088$
Engineering 400,190 154,230 39%321,849 138,688 43%15,542$
Recreation Services 819,060 373,326 46%752,015 356,130 47%17,196$
Public Works 1,652,250 827,419 50%1,425,266 618,952 43%208,467$
Total 14,169,665$ 7,173,975$ 51%13,415,805$ 6,580,969$ 49%593,006$
Mid-Year Current Fiscal Year Mid-Year Prior Fiscal Year
Information Technology – the increase of $83,189 is due to significant one-time expenditures in the current fiscal year
including an update of the City’s website and equipment purchases.
City Attorney – the increase is due to ongoing litigation in the current fiscal year as well as the timing of processing
payments for attorney services in the prior year. The prior fiscal year contained only five months of expenses, the
current year contains six.
Non-Departmental – the $81,098 increase is mostly due an anticipated increase in the premium for liability insurance.
Police – The majority of this increase is due to filling existing staff vacancies.
Public Works – the majority of this increase reflects the purchase of new vehicles in the current fiscal year.
All other variances are within a normal range.
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City of Arroyo Grande
Mid-Year Budget Report – 2013/14 February 11, 2014
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Overtime Summary:
Mid Year FY 2013-14
DepartmentJulyAugSeptOctNovDecTotal
Police 7,619$ 18,055$ 23,552$ 11,836$ 21,195$ 19,672$ 101,929$
Recreation 348 44 392
Public Works 120 518 555 697 324 2,214
Total 7,739$ 18,573$ 24,107$ 12,533$ 21,867$ 19,716$ 104,535$
Other Funds
Local Use Tax Fund (Fund 218)
This fund has been established to account for the ½ cent sales tax increase that was approved in November 2006. With
four months of sales, this revenue source is at 43%. Based on information from the City’s sales tax advisor, staff is
recommending increasing this revenue by $78,000. The estimated fund balance at the end of FY 2013-14 in this fund is
$219, which reflects accelerating $33,000 from FY 2014-15 for the purchase of Rule 20A credits from the County.
However, staff believes the fund balance will remain above 15% of expenditures when factoring project savings and
project delays.
CIP (Capital Improvement Program) Fund (Fund 350)
The procedures of the CIP require that revenues equal expenses in this fund, which means the fund does not typically
have a fund balance at year-end. If additional expenses are encountered in completing a project, funding must be found
to match the expenses. In reverse, when additional revenues are found, the scope of the project can be expanded,
previous funding returned to other funds, or revenues returned to the source.
Sewer Fund (Fund 612)
The Sewer Fund is projected to have a fund balance of approximately $624,470. Staff is requesting an increase of $25,000
in appropriations. The details for this appropriation are listed on pages 5-7 of this report under Mid Year Budget
Requests.
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City of Arroyo Grande
Mid-Year Budget Report – 2013/14 February 11, 2014
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Water Fund (Fund 640)
The Water Fund is projected to have a spendable fund balance of approximately $2,933,132 at June 30, 2014. Minor
changes to appropriations have been approved by the City Council to-date, as reflected in Appendix A.
Attachments
A brief overview of the attached schedules is provided to inform the reader of the purpose of each schedule.
Schedule A - Fund Balance. This schedule is provided to incorporate prior year fund balance into the current year
and to summarize the FY 2013-14 budget adopted by the City Council. This schedule includes adjustments that have
previously been approved by the City Council and lists the current requested adjustments in total.
General Fund Summary. This schedule provides a summary of the revenues, expenditures and fund balance with
actual results for the prior fiscal year as well as the original FY 2013-15 Biennial Budget and proposed amended
balances for FY 2013-14 and FY 2014-15.
Management Reporting System Status Report. This provides a status report of departmental budget goals.
Item 11.c. - Page 16
Fund Balance - Control
All Funds Operating Budget
2013/14 Adopted Budget
Schedule A
Actual Estimated
Total Total
Available Available
Fund Balance Original Adjustment Operating Operating FY 2012-13 Budgeted Adjustments to Fund Balance
July 1, 2013 Revenues to Revenues Transfer In Transfer Out Carryovers Appropriations Appropriations June 30, 2014
General Fund
010 General Fund:$3,686,936 $11,056,720 $695,500 $2,339,345 $115,500 $45,200 $13,608,385 $417,280 $3,592,136
Special Revenue Funds:
210 Fire Protection Impact Fees $107,419 $20,250 $127,669
211 Public Access Television 111,628 35,350 50,000 96,978
212 Police Protection Impact Fees 88,402 3,300 20,000 61,400 10,302
213 Park Development Fees 736,289 63,200 174,390 20,000 605,099
214 Park Improvement Fees 93,595 26,500 20,000 100,095
215 Recreation Community Center 49,594 1,700 14,676 36,618
216 Grace Lane Assessment District 55,499 10,200 3,100 9,800 52,799
217 Landscape Maintenance District 12,867 5,900 2,700 7,430 8,637
218 Local Use Tax Fund 1,897,349 1,934,400 78,000 1,703,427 1,555,067 227,480 423,556 219
219 Parkside Assessment District 330,915 42,710 4,600 20,700 348,325
220 Streets 0 452,805 207,675 313,500 75,850 12,600 690,455 195,075 0
221 Traffic Congestion Relief 0
222 Traffic Signal 594,237 32,500 200,000 426,737
223 Traffic Circulation 53,803 100 53,903
224 Transportation Facility Impact 2,090,906 60,000 700,000 557,238 893,668
225 Transportation 0 431,360 415,400 15,960 0
226 Water Neutralization Impact 363,990 37,000 105,900 295,090
230 Construction Tax 3,226 3,226
231 Drainage Facility 21,126 21,126
232 In-Lieu Affordable Housing 91,216 300 5,000 86,516
233 In-Lieu Underground Utility 198 198
240 Tourism Business Improvement District 162,200 146,599 15,601
241 Water Availability Fund 1,744,578 33,000 221,797 1,555,781
250 CDBG Grant Funds 0 223,794 223,794 0
271 State COPS Block Grant 173,382 300 108,382 65,000 300
Total Special Revenue Funds $8,620,219 $3,353,075 509,469 $313,500 $2,995,077 $3,067,944 1,229,324 $765,031 $4,738,887
City of Arroyo Grande
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Item 11.c. - Page 17
Fund Balance - Control
All Funds Operating Budget
2013/14 Adopted Budget
Schedule A
Actual Estimated
Total Total
Available Available
Fund Balance Original Adjustment Operating Operating FY 2012-13 Budgeted Adjustments to Fund Balance
July 1, 2013 Revenues to Revenues Transfer In Transfer Out Carryovers Appropriations Appropriations June 30, 2014
City of Arroyo Grande
Capital Project Funds:
350 Capital Improvement Fund $34,838 $715,733 $5,514,631 $3,087,602 $4,692,460 $3,803,335 $822,171 $34,838
Total Capital Project Funds $34,838 $715,733 $5,514,631 $3,087,602 $0 $4,692,460 $3,803,335 $822,171 $34,838
Enterprise Funds:
612 Sewer $654,850 $1,036,000 $21,650 $678,900 $52,500 $302,380 $54,250 $624,470
634 Sewer Facility 384,178 21,500 33,000 372,678
640 Water Fund 3,062,018 4,083,600 1,556,170 302,741 2,264,075 89,500 2,933,132
641 Lopez Water 2,787,500 2,074,000 307,800 2,271,500 2,282,200
642 Water Facility 778,556 23,500 19,500 782,556
Total Enterprise Funds $7,667,102 $7,238,600 $21,650 $0 $2,562,370 $355,241 $4,837,955 $176,750 $6,995,036
Trust and Agency Fund:
286 Successor Agency to the RDA $769,270 $150,000 $619,270 $0
751 Downtown Parking 188,642 9,300 3,000 140,000 3,525 51,417
Total Trust & Agency Fund $188,642 $778,570 $0 $0 $153,000 $140,000 $622,795 $0 $51,417
Grand Total All Funds
$20,197,737 $23,142,698 $6,741,250 $5,740,447 $5,825,947 $8,300,845 $24,101,794 $2,181,232 $15,412,314
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Item 11.c. - Page 18
FUND: 010 GENERAL FUND
2012-13 ORIGINAL AMENDED ORIGINAL AMENDED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 3,305,852$ 3,605,703$ 3,686,936$ 3,393,383$ 3,592,136$
Revenues:
Revenues 11,792,152 11,056,720 11,752,220 11,418,120 11,809,620
Transfers In 2,008,635 2,339,345 2,339,345 2,455,350 2,455,350
Use of Reserves - 215,000 94,800 150,000
Total Revenues 13,800,787 13,611,065 14,186,365 14,023,470 14,264,970
Expenditures:
Salaries and Benefits 8,259,050 9,189,995 9,279,770 9,389,495 9,443,195
Current Expenses 4,501,872 4,079,445 4,308,600 4,209,000 4,182,000
Debt Service 134,688 248,395 248,395 248,395 248,395
Capital Outlay 439,623 90,550 234,100 182,200 52,200
Transfers Out 84,470 - 115,500 - 106,000
Total Expenditures 13,419,703 13,608,385 14,186,365 14,029,090 14,031,790
Total Operating Increases (Decreases)381,084 2,680 - (5,620) 233,180
Use of Reserves - (215,000) (94,800) (150,000) -
Total Adjustments to Fund Balance 381,084 (212,320) (94,800) (155,620) 233,180
Available Fund Balance 3,686,936$ 3,393,383$ 3,592,136$ 3,237,763$ 3,825,316$
FISCAL YEAR 2013-14 FISCAL YEAR 2014-15
GENERAL FUND SUMMARY
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Item 11.c. - Page 19
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1, 2013 - December 31, 2013
DEPARTMENT: CITY ADMINISTRATION
Departmental Goals – Status Report
Complete In-
Progress/
Upcoming
Defer/
Delete
Revise/
New
X Complete update of the Administrative Policy Manual.
X Develop plan to implement new requirements of the Affordable Care Act.
X Coordinate implementation of a comprehensive customer service program.
X Coordinate establishment of a tourism business improvement district.
X Implement annual participation in the ICMA National Citizens’ Survey to enhance
public input and customer service feedback.
X Continue providing legal advice and assistance on all aspects of City business and
represent the City in matters requiring legal action.
X Identify areas and develop standardized forms when appropriate.
X Coordinate Code Enforcement legal response to chronic cases.
X Complete process of developing a City Charter for Council consideration to place on
the ballot at the November 4, 2014 election.
Item 11.c. - Page 20
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1, 2013 - December 31, 2013
DEPARTMENT: LEGISLATIVE & INFORMATION SERVICES
Departmental Goals – Status Report
Complete In-
Progress/
Upcoming
Defer/
Delete
Revise/
New
X Update Citywide Records Retention Schedule to reflect City's reorganized structure
and update Records Management Manual.
X Upgrade cablecasting and audio/visual systems in Council Chambers.
X Coordinate November 2014 General Municipal Election.
X Complete web/public access portion of City LaserFiche project.
X Coordinate and conduct a Candidate Orientation for City Council and Mayoral
candidates.
X Publish 8 issues of the City-wide newsletter for distribution to all City residences and
businesses.
X Conduct new Commissioners Orientation (2015).
X Conduct biennial review of the Conflict of Interest Code (2014).
X Update Municipal Code as new ordinances are adopted.
X Coordinate annual records destruction pursuant to reten tion schedule.
Item 11.c. - Page 21
Management Reporting System: Legislative & Information Services Page 2
X Develop recommendations for centralized records storage.
X Maintain and update Government Access Channel and City website.
X Develop request for proposal for website redesign and hosting.
X Meet all legal publishing and posting requirements.
X Complete Citywide network policy.
X Perform replacement of seven (7) core servers between City Hall and Police
Department.
X Upgrade Microsoft Windows network environment.
X Upgrade Microsoft Exchange email and SQL database environment.
X Replace primary copier/printer in Community Development Department.
X Complete CitizenServe egovernment software implementation.
X Increase network spare equipment inventory.
X Implement virtualized server environment.
X Implement enterprise level data backup solution.
X Implement Voice over IP ( VoiP) phone solution.
X Implement hosted website solution.
X X Implement Police Dept. Remodel/Relocation Project Data and Voice (network and
phone system) upgrade.
Item 11.c. - Page 22
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1, 2013 - December 31, 2013
DEPARTMENT: ADMINISTRATIVE SERVICES
Departmental Goals – Status Report
Complete In-
Progress/
Upcoming
Defer/
Delete
Revise
/New
X Update Financial Section of the Administrative Policy Manual.
X Assist with the completion of a Water and Sewer Rate Study.
X Update the City's Purchasing Policy.
X Prepare and distribute an RFP for banking services.
X Cross train with Human Resources staff to improve customer service.
X Implement on-site bank deposit system in order to reduce out of office staff time.
X Complete the City's annual audits and comprehensive annual financial report (CAFR).
X X Issue RFP for OPEB study. Obtain updated OPEB actuarial report.
X Complete update of the City's Personnel Regulations.
X Complete update of the City's Administrative Policy Manual Personnel policies.
X X Implement personnel software in order to update Human Resource processes.
Implement online job applications through the City’s website.
Item 11.c. - Page 23
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1, 2013 - December 31, 2013
DEPARTMENT: COMMUNITY DEVELOPMENT
Departmental Goals – Status Report
Complete In-
Progress/
Upcoming
Defer/
Delete
Revise/
New
x Complete updates of Circulation, Conservation and Open Space elements.
x Develop work-plan for an update of remaining General Plan Elements, including Land
Use, Agriculture, and Noise Elements.
x Create a database to inventory for designated and potential historic resources and
districts.
x Designate structures as proposed by property owners and Continue Village Core
assessment of historic structures.
x Develop work plan to identify and address obstacles to infill development along East
Grand Avenue.
x Apply for grant funding to implement one or more projects identified in the Bicycle and
Trails Master Plan. 1
x x Process applications for Courtland Street and East Grand Avenue, County multi-
family housing, and East Cherry Avenue development projects.2
x Prepare Development Code update regarding sign regulations.
Item 11.c. - Page 24
Management Reporting System: Community Development Page 2
Complete In-
Progress/
Upcoming
Defer/
Delete
Revise/
New
x Codify affordable housing in-lieu fee.
x
Record conservation and drainage easements for the Clark property at Printz Road
and complete sedimentation retention project. Due to property owner non-
participation, grant funding may be moved to restoration project on Tally Ho.
x Establish a James Way Open Space trail connection.
x Update existing GIS parcel data.
x Expand access to GIS data for City employees through procurement of additional
software licensing and training.
x Obtain consultant assistance for the preparation of the Land Use Element Update and
Program EIR.
x Design the Bridge Street Bridge Rehabilitation Project.
x Coordinate future construction of extension of Castillo Del Mar behind Arroyo Grande
High School.
x Construct the Water Well No. 11 Facilities Rehabilitation project.
x x Complete revised Car Corral upgrade, Montego Street sidewalk infill project, Halcyon
Road and Alpine Street improvements.3
x Assist with community project to upgrade the Paulding East Branch Street wall.
x In conjunction with Planning Division, prepare and submit annual Stormwater
Management Plan report to the Regional Water Quality Control Board.
x Develop Traffic and Circulation Fee Study and coordinate with Planning Division on
Circulation Element Update.
x Receive training and train other staff specific to required NPDES and storm water
inspection and erosion control.
x Update Americans' with Disabilities Act (ADA) compliance plan.
Item 11.c. - Page 25
Management Reporting System: Community Development Page 3
Complete In-
Progress/
Upcoming
Defer/
Delete
Revise/
New
x Implement expanded interactive remote inspection through use of smart phone
devices.
x Assist in the implementation of the automated Planning tracking system.
x Adopt the 2014 California Building Standards Codes with amendments.
Provide applicable permitting and inspection for projected projects including:
x Commercial building at the Five Cities Center (Pier One).
x x Commercial and residential buildings for the JJ's building and new Market.
x Commercial buildings at the Courtland Street and East Grand Avenue.
x Detached single family residential homes at the Grace Lane subdivision.
x Apartments at the Pike and Elm Street project.
x Co- cellular telephone carriers located at reservoir sites and Southern California Gas
Company Advance Meter and City Repeater Equipment.
x Increase percentage of code enforcement cases resolved within one month by 25%.
x Obtain required design exceptions from Cal trans for the Brisco Interchange project.
x Complete bid/award and start construction of the Police Station project.
x Once funding secured scope design projects for Fair Oaks/FWY 101 off ramp and E.
Branch Streetscape extension.
1 Revised due to workload priorities. A grant was recently submitted for an electric charging station at the Le Point
St. Parking lot.
2 No applications received. Courtland and E. Grand and E. Cherry Ave. are expected. The County MF project has
been temporarily deferred.
3 These pavement projects are complete except for Alpine that is scheduled for Spring 2014.
Item 11.c. - Page 26
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1, 2013 - December 31, 2013
DEPARTMENT: POLICE DEPARTMENT
Departmental Goals – Status Report
Complete In-
Progress/
Upcoming
Defer/
Delete
Revise/
New
X Maintain or exceed National UCR average clearance rate for Part 1 Crimes.
X Address the Police Department's facility needs.
X Continue the communications upgrade project with COPS grant funding including the
establishment of full service public safety radio repeater sites.
X Expand and enhance Operation Blue Watch Police Video Surveillance system based
on existing annual funding.
X Continue to promote consolidated public safety services.
X Work with Human Resources to transfer custody of identified personnel files currently
held in the Police Department to Human Resources for assimilation.
X Continue to actively evaluate and implement cost saving measures including grants,
state and federal surplus property programs and internal controls and audits.
X Enhance Neighborhood Services Program to cover seven days a week through
existing funding utilizing three temporary part time positions.
X Enhance focused traffic enforcement in targeted areas utilizing public education and
Item 11.c. - Page 27
Management Reporting System: Police Department Page 2
Complete In-
Progress/
Upcoming
Defer/
Delete
Revise/
New
technology in partnership with Engineering and Public Works.
X Maintain minimum police patrol staffing of three field units at all times.
X Provide public safety public relations program to include presentations to community
groups and schools and community problem resolution.
X Process, record and track code enforcement complaints to initiate inspection within 48
hours of complaint and citations within 4 months of non -compliance.
X Continue to support and enhance the Citizen Volunteer Program and participate in the
South County Police volunteers.
Item 11.c. - Page 28
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1, 2013 - December 31, 2013
DEPARTMENT: PUBLIC WORKS
Departmental Goals – Status Report
Complete In-
Progress/
Upcoming
Defer/
Delete
Revise/
New
X X Construct new 2,000 sf. PW Administration building and complete minor renovations
to the existing Corporation Yard buildings.
X Develop and implement automated work order and management system.
X Work with Building Division on update of Americans' with Disabilities Act (ADA)
Compliance Plan.
X X Conduct a comprehensive municipal facility inspection for Storm Water Management
Plan compliance.
X Establish routine facility inspections to identify and repair safety hazards and
maintenance items.
X Conduct Arch Flash evaluations and labeling to meet OSHA requirements and to
improved employee safety practices.
X Design and Install the Don Roberts field lights
X Conduct the annual turf renovation project at the Soto Sports Complex fields in 2013
and 2014.
X Design and construction of ADA accessibility improvements to Volunteer field in the
Item 11.c. - Page 29
Management Reporting System: Public Works Page 2
Complete In-
Progress/
Upcoming
Defer/
Delete
Revise/
New
Soto Sports Complex.
X Design and construct the annual concrete repair projects on City sidewalks at various
locations.
X Secure a landscaping contractor through a competitive bid process to maintain
various City park and landscape areas.
X X Conduct Annual Creek preservation and vegetation removal projects.
X Improve maintenance of assessment district landscaped areas utilizing contracted
landscape maintenance firms.
X Plan and complete on schedule the annual pavement management program.
Utilities Division (Water and Sewer Funds)
X Construct Fair Oaks Phased Main Replacement (Alder to Halcyon).
X Upgrade Leanna Drive Creek Crossing.
X Complete Trenchless Sewer Rehabilitation- Crown Terrace, Le Point, The Pike &
Eman Court to Newman drive easements.
X Complete the design of the Reservoir #3 & #4 Coating and Seismic Evaluations.
X Complete the Water and Sewer rate study in coordination with the Finance Division.
X X Complete upgrades to the Water and Wastewater SCADA system, including
purchasing and installing replacement radios.
Item 11.c. - Page 30
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1, 2013 - December 31, 2013
DEPARTMENT: RECREATION SERVICES
Departmental Goals – Status Report
Complete In-
Progress/
Upcoming
Defer/
Delete
Revise/
New
X Identify partnerships to help fund needed improvements at the Woman's Club
Community Center.
X Complete storage sheds at Ikeda and Volunteer Fields within the Soto Sports
Complex with funding from private donations.
X Establish a Recreation Foundation to help raise funds for an Elm Street building
and/or other recreation needs.
X Continue office organization efforts, program evaluations and staff training to increase
efficiency and service levels.
X Increase enrollment in the child care programs.
X Continue fund raising strategies for the Children In Motion program, with a goal of
raising a minimum of $10,000 per year.
X Continue working with the Five Cities Community Services Foundation to raise funds
for the proposed recreation center.
X Continue offering a variety of youth and adult sport programs including basketball,
softball and wrestling.
Item 11.c. - Page 31
Management Reporting System: Recreation Page 2
Complete In-
Progress/
Upcoming
Defer/
Delete
Revise/
New
X Continue to increase utilization of Soto Sport Complex for tournaments and fall
softball.
X X Increase community outreach to inform citizen and broaden partnerships.
Item 11.c. - Page 32